SUBJECT: Social Security
Administration requests
1. Purpose. This memorandum provides instructions for processing Social Security Administration (SSA) requests for service data certification, age verification, or medical data that is needed in connection with adjudicating social security claims.
2. Cancellation. NPRC 1865.52B is canceled.
3. Reason for revision. The purpose of this revision is to update procedures for responding to SSA requests.
4. Instructions. The instructions for responding to SSA requests submitted on Standard Form 180, Request Pertaining to Military Records, Form SSA-654, Request for Information from Uniformed Services, and the Form SSA-829, Request for Medical Information from Military Facilities or Records Center, are contained in the attachment to this memorandum.
5. Forms. This memorandum provides for the use of the following forms:
DD Form 418, Data for Payment
of Retired Armed Forces Personnel
Form SSA-654, Request for
Information from Uniformed Services
Form SSA-829, Request for
Medical Information from Military Facilities or Records Center
NA Form 13008, Loan or Transfer
of Records
NA Form 13041, Statement
of Service
NA Form 13051, Transmittal
NA Form 13053, NPRC Acknowledgment/Referral
SF 180, Request Pertaining
to Military Records
DAVID L. PETREE
Director
1. Background.
a. The Social Security Act, as amended, provides social security credits, under certain conditions, to members of the Armed Forces who served on active duty at any time during the World War II period (September 16, 1940, through July 24, 1947) and post-World War II (July 25, 1947, through December 31, 1956). The law provides that, for social security purposes, members of the Armed Forces are considered to have been paid wages of $160 for each month during any part of which active duty was performed. The granting of wage credits is prohibited, however, if the period of service was used as a basis for periodic benefits under another Federal benefit system, except from the Department of Veterans Affairs.
b. The Servicemen's and Veterans' Survivor Benefits Act, Public Law 881, 84th Congress, provided new survivor and social security rights for military personnel. It brought members of the Armed Forces under Social Security on a contributory basis beginning January 1, 1957, to replace the $160 a month wage credit provision.
c. The Social Security Act, as amended, requires that the necessary record information be verified from the official service record to enable the SSA to process claims for social security benefits filed by veterans, members of the Fleet Reserve (Marine Corps and Navy), and personnel entitled to receive retired pay; and by their survivors.
2. Source of requests. The requests originate in all SSA field and district offices as well as the Headquarters Office at Baltimore, Maryland. A few requests are received directly from the Philippines. These originate at the Philippine Island Department of Veterans Affairs facility because there is no SSA office there.
3. Request forms. The SSA offices use the SF 180, Request Pertaining to Military Records, for requests for verification of military service data. See fig. 1. They will normally ask only for the separation document(s). Form SSA-654, Request for Information from Uniformed Services, is sent when information related to Part B of the form is needed; when evidence of age (Part C) is needed and service is fire related; or additional information is needed concerning matters like reason for separation, or active duty for training. Requests for military medical data are submitted on Form SSA-829, Request for Medical Information from Military Facilities or Records Center. See fig. 2. SF 180 and Forms SSA-654 (Parts A & C) received involving any branch of service are processed by NPRC personnel.
a. Branches of service involved. Forms SSA-654 (Part B) received involving service in the Army, Air Force, and/or Navy are processed by NPRC personnel.
NOTE: See subpar. 4b(2)(b) for instructions regarding requests involving Coast Guard and Marine Corps service.
b. Verification of name, social security number and service number. Verify the name, social security number (SSN), and service number (SN) as given on the SSA-654 with the service record, and check appropriate blocks.
a. Certification in Part A.
(1) Block 1. If individual was already serving on active duty on September 7, 1939, show the date entered on active duty for this period, and show all dates of entry into active duty since September 7, 1939. Show active duty for training between September 7, 1939, and December 31, 1956, if it totals 90 days or more in any one year period. Report shorter periods of active duty for training in the "Remarks by Certifying Organization" block on the back side of Form SSA-654.b. Certification in Part B. Examine the record to determine if individual was ever in a retired or retainer pay status, then proceed as follows:(2) Block 2. Show each date of separation from active service including active duty for training (totaling 90 days or more as in (1), above), after September 7, 1939. Report only the date of final release if continuous active service was performed and all service was terminated honorably. Report separately any enlistment period that terminated with an Undesirable, Bad Conduct, Dishonorable Discharge, Under Honorable Conditions Discharge, or Discharge Under Other Than Honorable Conditions.
(3) Block 3. Information reported in this block is important to the social security claims adjudicator as no wage credit is authorized for service that terminated by sentence of a general court-martial or by any of the reasons stated in boxes a, b, c, or d in block 3. The form is returned to NPRC for clarification when the adjudicator is unable to determine from our response that service did not terminate by any of these reasons. Follow these guidelines to avoid supplemental actions by SSA.
(a) When reporting an honorable separation other than by discharge, show character of service with type. Example: "Hon (retired)," "Hon (Trans. to Fleet Reserve)," "Hon (Rel. from active duty)."
NOTE: If type of separation cannot be determined from available sources, correspondence technicians may furnish the character of separation only.
(b) In reporting the character of discharge, use appropriate basic character, "Hon," "Under Honorable Conditions," "Bad Conduct," or "Dishonorable." Do not show the different characters that fall within the "Under Honorable Conditions" category. Do not abbreviate any character of discharge except "Honorable," which is shown as "Hon."
(c) When the character of discharge is "Bad Conduct," show the type of court-martial proceeding it resulted from: special court-martial, summary court-martial, or general court-martial.
(d) A dishonorable discharge is awarded only by sentence of a general court-martial. SSA personnel are aware of this, so no explanation is required.
(e) In the case of an officer who resigned for the good of the service, place a check in box b, even though the nature of the service was reported under the character of separation.
(f) If individual was an enlisted member, administratively separated with an Undesirable Discharge or an Under Other Than Honorable Conditions Discharge, or who received a Bad Conduct Discharge by reason of a special or summary court martial, always place a check in box a, c, d, or e, as applicable. Do not check block 3e unless the reason is known and it is in fact none of the choices in blocks 3a, c, or d. In such a case, write the reason under "Remarks By Certifying Organization" near the bottom of the form. If the reason is not available (most likely because of the fire), write "reason not available" next to checkblock e - but do not check it. Also, do not make special efforts to identify the narrative reason if it is not available from the same alternate source that provided the character.
(4) Blocks 4 and 5. Self-explanatory.
(1) No retired or retainer pay status involved. Check the box opposite the first entry under Part B. No further action is required in Part B.c. Verification in Part C. This part is checked on the request when the claimant is unable to present satisfactory evidence of correct date of birth to prove eligibility for social security benefits. Examine contents of the record to see if it contains a birth certificate or other documentary evidence of birth date such as enlistment contract or induction paper. If located, transcribe birth record data from the earliest completed form/document that contains the information. Report each birth date that appears in the record.(2) Retired or retainer pay status is involved.
(a) Air Force, Army and Navy (officer and enlisted).
Air Force: See app. A for instructions for completing Part B of Form SSA-654. Included in app. A are additional instructions regarding the following: computation of reserve retirement; temporary disability retirement list; and election of pay when DD Form 418, Data for Payment of Retired Armed Forces Personnel, is not found in the record.
Army: See app. B for instructions for completing Part B of Form SSA-654.
Navy: See app. C for instructions for completing Part B of Form SSA-654.
(b) Coast Guard and Marine Corps. NPRC is not authorized to certify Coast Guard or Marine Corps retired or retainer pay. This is done by Coast Guard Headquarters and Defense Finance and Accounting Service - Kansas City Center. If Part B is checked on the request and such status is involved, forward the request to the appropriate place, using NA Form 13051, Transmittal. Complete Parts A and/or C certification on Form SSA-654 as in subpar. a, above, and subpar. c, below, if requested.
5. SF 180 requests. In general, requests made on SF 180 are for a separation document only. However, an occasional request for active duty for training is made on a SF 180, in which case, the information is provided.
a. Separation document and/or statement of service requested.
(1) Separation document(s) on file. Furnish copies.b. Active duty for training requested. Furnish ACDUTRA dates on reverse side of NA 13041, Statement of Service.(2) Separation document(s) not on file.
(a) If character of service was "Honorable," "Under Honorable Conditions," or "Dishonorable," prepare NA Form 13038, Certification of Military Service, according to provisions of NPRC1865.51, Request for replacement of separation documents.
(b) If character of service was "Under Other Than Honorable Conditions," "Bad Conduct," or "Undesirable," IBR case to C5. C5 technician prepares NA Form 13038 and includes reason for separation in Remarks.
c. Other information requested. Furnish other items of information, such as date of birth, if specifically requested.
6. Supplemental requests. On requests marked "Supplemental," furnish only items specifically requested.
7. Information previously furnished. When a follow-up request is received and information furnished in the previous reply is the same as that being requested, take no action on the follow-up request when evidence is found indicating the original inquiry was answered within seven workdays prior to the date of the follow-up. (NPRC 1865.2, General information and instructions relating to reference service, for additional instructions regarding follow-up action.)
8. Form SSA-829. This form is addressed to the military medical facility where treatment occurred. It is then referred to NPRC for action, as records for the period in which treatment was received were retired to NPRC.
a. Medical records on loan to VA. NEVER refer a Form SSA-829 to a VA facility, even though the medical record is on loan to the VA. The SSA office is not interested in record of treatment if the VA has already conducted a medical background investigation. Complete item 4 in Section IV of Form SSA-829. The SSA office then requests a report from VA on another form.
b. Processing.
(1) Medical records available. Photocopy applicable medical records in accordance with NPRC 1865.103, ch.1-11, Requests involving medical records, and forward as enclosure to Form SSA-829. Complete request involving drug/alcohol abuse records in accordance with NPRC 1865.103, ch. 1-8.c. Searching hints. To avoid as many lengthy organizational (clinical) record searches as possible, answer Form SSA-829 from the veteran's health record. However, if health record is not readily available (charged-out), refer request to the Organizational Records Section for a search of clinical records.(2) Medical records not on file at NPRC. Complete applicable item(s) 1, 2, 3, or 4 in Section IV on the Form SSA-829.
d. Reply. Send completed Forms SSA-829, to the state agency that is making the disability determination. This address is shown in the middle block under Section II, Originating Office.
9. Signature authority for Forms SSA-654 and SSA-829. Affix correspondence code stamp, signature, and date as shown in fig. 2 (Part 2 of 2) and fig. 3. The archives technician completing the inquiry enters the current date and signs his/her initials.
10. Copies. Retain carbon copy of the form in the service record. If there is no carbon copy, make a photocopy.
11. SF 180, Forms SSA-654/SSA-829 requests pertaining to records not in NPRC custody. When it is determined that the record needed to answer a request is not located at NPRC, forward the request to the records facility, using NA Form 13051, Transmittal, and checking appropriate address block. Fill in the appropriate office symbol/code. See fig. 4 for additional instructions on which blocks to check.
| Question 1: NOTE:
If 1(a) and 1(b) are answered in the negative, disregard 1(c) and 1(d).
If 1(a) or 1(b) is
answered in the affirmative, complete 1(c) and 1(d). |
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| MINIMUM REQUIREMENTS | Item 1(c)--9/16/40 through 7/24/47 | Item 1(d)--7/25/47 through 3/31/56 |
| Disability before 10/1/49 minimum requirement of 20 years active service | Complete if 1(a) is "Yes". Answer "Yes" if part of minimum requirement falls in this period, (otherwise "No"). | Complete if 1(a) is "Yes". Answer "Yes" if part of minimum requirement falls in this period. |
| Longevity
20 years minimum (for individuals retired on or after 6 Oct 45) |
Complete if 1(b) is "Yes". Answer "Yes" if part of minimum requirement falls in this period, (otherwise "No"). | Complete if 1(b) is "Yes". Answer "Yes" if part of minimum requirement falls in this period, (otherwise "No"). |
| Longevity
30 years total service active & inactive, minimum (for individuals retired on or before 5 Oct 45) |
Complete if 1(b) is "Yes". Answer "Yes" if part of minimum requirement is active service in this period, (otherwise "No"). | Complete if 1(b) is "Yes". Answer "Yes" if part of minimum requirement is active service in this period, (otherwise "No"). |
| Question II: NOTE:
If the person was retired for disability, search records for letter to
Airman describing
benefits he is entitled to receive. Note in his reply whether he elected to receive pay based on disability percentage or on years of service. If he elected benefits based on disability percentage, answer 2(a) "No", and disregard 2(b) and 2(c). If he elected benefits on years of service, answer Item 2(a) "Yes" and consult instructions below. |
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| All (Yrs of svc, only) | Answer "Yes" if individual had Less than 29 yrs and 6 mos of active service before 9/16/40 and performed sufficient active service in this period which would have increased his multiple, (otherwise "No"). | Answer "Yes" if individual had less than 29 yrs and 6 mos of active service before 7/25/47 and performed sufficient active service in this period which would have increased his *multiple, (otherwise "No"). |
| *Multiples for pay purposes based on increments of 6 mos or more which are then counted as whole years. Therefore, a man having been retired with 22 years 10 months service would be paid on a multiple of 23 years. Assuming this individual performed 6 mos active duty during the period stipulated his longevity would have been increased to 23 year 4 months, but his multiple would have remained 23 years. (In this instance the answer would be "No"). However, if this individual performed 8 months active duty during period stipulated, his longevity would increase to 23 years 6 months, which in turn would increase his multiple to 24 years. (In this instance the answer would be "Yes"). | ||
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| Question 1(a):
(1) Place an "X" in the NO box if the member was retired: (a) As an officer.(2) Place an "X" in the YES box if: (a) The member was serving in an enlisted status at the time of retirement and retired in his enlisted status AFTER 15 Sep 40 and BEFORE 1 Oct 49, because of disability. |
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| Question 1(b):
(1) Place an "X" in the YES box if the member was retired AFTER 15 Sept 40 and NOT for disability. (2) Place an "X" in the NO box if the member was retired: (a) For disability. |
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Question 1(c) and 1(d):
(Answer only if the YES box was checked in questions 1(a) or 1(b).
If the law under which retired specifiex a minimum amount of active service, compute member's active service to the date that such minimum service was completed. If the date falls within or after this period(s), "X" the YES boxes; if not, "X" the NO boxes. |
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| Question 2(a):
(1) Place an "X" in the YES box if the member was: (a) Retired for length of service.(2) Place an "X" in the NO box if the member was: (a) Retired for disability and elected to have his retired pay based on percentage of disability (except (b) below). |
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| Questions 2(b) and 2(c): (Answer only if the YES box was checked in question 2(a)), Compute all service performed to the date the maximum was completed (Not to exceed 29 1/2 years), If any of the portion of service up to, but not exceeding 29 1/2 years falls within the periods 16 Sep 1940 through 24 Jul 1947 or 25 Jul 1947 through 31 Dec 1956, place and "X" in the YES boxes; if not, place an "X" in the NO boxes. (Note: Promotions occurring on active duty tours subsequent to retirement which serve to increase the amount of retired pay previously awarded have no bearing on questions 2(b) and 2(c).) | ||
| Question 3:
Place an "X" in the YES box if the member had active duty or active duty for training after 31 Dec 1956 regardless of the type retirement or method of computing retired pay. Place an "X" in the NO box if the member had NO active duty or active duty for training after 31 Dec 1956. |
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Air Force Officers AND Enlisted
Additional instructions for completing Part B - Service Dept. Certification About Retired Retainer Pay
1. Reserve retirement. Use this statement when computing reserve retirement:
3. Election of pay when DD Form 418, Data for Payment of Retired Armed Forces Personnel, is not found in the record. Route request only to: Defense Finance and Accounting Service - Denver Center, DFAS-DE, ATTN: CIDM, Denver, CO 80279, using NA Form 13051, Transmittal (see fig. A-1). NOTE: If the former serviceperson is deceased, enter the word "deceased" in the upper right hand corner of the NA Form 13051.
a. Prepare the NA Form 13051 in duplicate and route:
(1) Original NA Form 13051 with original request to CIDM.b. Send NA Form 13053, NPRC Acknowledgement/Referral, to the originating SSA office.(2) File carbon copy of NA Form 13051 and copy of request in the record.
NOTE: Furnish the address of the originating SSA office in the "REF:" block on the NA Form 13053
Completion of Part B - Service Dept. Certification About Retired or Retainer Pay.
1. Veteran never retired or transferred to Fleet Reserve. If the veteran has not been a Fleet Reservist, has not been retired, or had retired pay determined payable to him/her, check the block after the first line in Part B. No further action in Part B is required.
2. Veteran retired or transferred to Fleet Reserve. When the member has been a Fleet Reservist, or has been retired or had retired pay determined payable to him, check the appropriate blocks in items 1, 2 and 3. The following guidelines are furnished to assist in answering these items.
a. Item 1(a).
(1) Check "Yes" if the member was retired for physical disability after September 15, 1940, and before October 1, 1949.b.Item 1(b).(2) Check "No" if the member was not retired for physical disability after September 15, 1940, and before October 1, 1949.
(1) Check "Yes" if the member is in one of the following categories.c. Item 1(c).(a) Transferred to the Fleet Reserve after September 15, 1940.
(b) Transferred to the Fleet Reserve after September 15, 1940, even if later retired for physical
disability as the result of a physical examination taken every four years.(c) Retired upon completion of 30 years' active and inactive service after September 15, 1940, even if transferred to the Fleet Reserve prior to September 16, 1940.
(d) Became entitled to retired pay after September 15, 1940. This category includes members of the Regular Navy and members and former members of the Naval Reserve who have had retired pay benefits determined payable to them.
(2) Check "No" if the member is in one of the following categories.
(a) Transferred to the Fleet Reserve prior to September 16, 1940 and not retired, nor retired pay determined payable, after September 15, 1940.
(b) Retired for service-connected physical disability under 10 USC Chapter 61.
(c) Retired upon completion of 30 years' active service prior to September 16, 1940.
(d) Retired pay determined payable and no active service was performed after September 15, 1940.
(1) Check "Yes" if one of the following conditions applies.d. Item 1(d).(a) Minimum service requirement was completed for transfer to the Fleet Reserve after September 15,1940.
(b) Active service performed between September 16, 1940, and July 24, 1947, was used to fulfill the requirements for entitlement to retired pay.
(c) Minimum service requirement for transfer to the Fleet Reserve was completed prior to
September 16, 1940, but the active service after September 15, 1940, and before July 25, 1947, was a part of the total active and inactive service needed for retirement.(2) Check "No" if the minimum service requirement for transfer to the Fleet Reserve and for establishing eligibility for retired pay was completed prior to September 16, 1940.
(1) Check "Yes" if one of the following conditions applies.e. Item 2(a).(a) Minimum service requirement was completed for transfer to the Fleet Reserve after July 24, 1947.
(b) Active service performed between July 25, 1947, and December 31, 1956, was used to fulfill the requirements for entitlement to retired pay.
(c) Minimum service requirement for transfer to the Fleet Reserve was completed prior to July 25, 1947, but the active service after July 24, 1947, and before January 1, 1957, was a part of the total active and inactive service needed for retirement.
(2) Check "No" if the minimum service requirement for transfer to the Fleet Reserve and for establishing eligibility for retired pay was completed prior to July 25, 1947.
(1) Check "Yes" if retainer or retired pay has ever been fixed under a years of service formula.f. Item 2(b).(2) Check "No" if the veteran was retired for physical disability and the percentage of disability was elected as a basis for computation of retired pay, both at time of retirement and transfer.
(1) Check "Yes" if any active service performed between September 15, 1940, and July 24, 1947, has been included in the multiple of active service used in the computation of retainer or retired pay. For purposes of this multiple, fractions of one-half year or more of active service are counted as a whole year.g. Item 2(c).(2) Check "No" if one of the following conditions applies.
(a) Active service performed between September 15, 1940, and July 24, 1947, did not increase the multiple of active service used in the computation of retainer or retired pay.
(b) transferred to the Fleet Reserve prior to September 16, 1940, reported for active duty after September 15, 1940, and died while on active duty.
(c) Completed 29 and 1/2 years active service prior to September 16, 1940.
(1) Check "Yes" if any active service performed between July 25, 1947, and December 31, 1956, is included in the multiple of active service used in the computation of retainer or retired pay. For purposes of this multiple, count fractions of one-half year or more of active service as a whole year.h. Item 3.(2) Check "No" if one of the following conditions applies.
(a) Active service performed between July 25, 1947, and December 31, 1956, did not increase the multiple of active service used in the computation of retainer or retired pay.
(b) Transferred to the Fleet Reserve prior to July 25, 1947, reported for active duty after July 24, 1947, and died while on active duty.
(c) Completed 29 and 1/2 years active service prior to July 25, 1947.
(1) Check "Yes" if the veteran performed active duty or active duty for training after December 31, 1956.(2) Check "No" if the veteran did not perform active duty or active duty for training after December 31,1956.
1. When Part B is checked, certification concerning the service used to establish eligibility for retirement and retired pay is desired by the Social Security Administration. Because of the many laws which apply to retirement and retired pay, as well as the interpretations which have been placed upon them by the Social Security Administration, no attempt has been made to cover in this instruction every type of case which could be encountered. Each case is considered on the basis of its own particular set of circumstances.
2. Questions 1(a), 1(b), and 3 of Part B are self-explanatory.
3. Question 1(c) asks "Was active service after September 15, 1940, and before July 25, 1947, used to establish eligibility to receive retirement or retainer pay?" Question 1(d) asks "Was active service after July 24, 1947, and before January 1, 1957, used to establish eligibility to receive retirement or retainer pay?" These questions differ only in that they apply to two different periods of time. In order to retire for length of service, an officer must complete a minimum period of active service to be eligible for such retirement and retired pay. If any part of the officer's active service between September 16, 1940, and July 24, 1947, is necessary to establish eligibility for retirement under the particular law under which the officer retired, answer question 1(c) "YES."
4. Generally, an officer's retired pay is based upon active service, a combination of active and inactive, or upon percentage of disability depending on the type of retirement. In addition, certain Regular officers (and certain Reserve officers retired for physical disability) retired after June 1, 1942, who served on active duty prior to November 12, 1918, are entitled to retired pay at the rate of 75% of their basic pay at the time of retirement regardless of length of service. If any of the officer's active service is included in the formula by which retired pay is computed (or was ever computed, answer question 2(a) "YES." If the officer was retired for physical disability, and elected to receive retired pay based upon percentage of disability rather than length of service, answer question 2(a) "NO." An officer retired for other than disability prior to October 1, 1949, who was entitled to 75% of basic pay because of service prior to November 12, 1918, had retired pay recomputed in accordance with the Career Compensation Act. Since the formula used in this recomputation included a multiple of service, answer question 2(a) "YES." When question 2(a) is answered "YES," questions 2(b) and 2(c) must be answered. If the service multiple used in computing the retired pay includes any active service between September 16, 1940, and July 24, 1947, answer question 2(b) "YES." Question 2(c) is treated similarly. Repeating the examples used in par. 3 above plus others, questions 2(a) - 2(c) are answered as indicated.
5. The following may also be encountered in processing social security inquiries:
a. An officer retired for statutory age pursuant to a law which does not include a minimum of active service as a prerequisite for retirement is not considered to have used active service to establish eligibility to receive retired pay. However, in most instances retired pay is computed under a formula which includes a multiple of active service.
b. An officer who completed 30 years of active service before September 16, 1940, remains on active duty, and subsequently is retired for any reason is considered not to have increased retired pay by service after September 14, 1940, because 30 years active service results in the maximum retired pay an individual can receive. The same reasoning applies to the post-World War II period July 25, 1947, December 31, 1956.
c. Because a part of a year that is 6 months or more is counted as a whole year in the computation of retired pay, compute the retired pay for an officer who completed at least 29 years and 6 months of active duty before September 16, 1940, or before July 25, 1947, on the same basis as if serviceperson had completed 30 full years. In cases of this type, answer the questions posed on Form SSA-654 based on the officer's actual service and show in the "Remarks" section of the Form SSA-654, the exact amount of active service the officer completed as of September 15, 1940, or July 24, 1947, as applicable.
d. When an officer retires pursuant to 10 USC 6321, an Act which requires 40 years of active service, answer the Form SSA-654 the same as if serviceperson had retired after 30 years active duty because an officer could not increase retired pay by service beyond the 30-year-point.
e. When a retired officer was recalled to active duty, answer the questions posed on Form SSA-654 by determining whether the officer's retired pay was increased by active duty performed during the periods September 16, 1940, to July 24, 1947, and/or July 25, 1947, to December 31, 1956.
f. The retirement orders of officers who are retired pursuant to Public Law 86-155 (commonly referred to as the "Navy Hamp Law") cite two authorities for the retirement. One citation is PL 86-155 (later codified into various sections of chapter 573, 10 USC); the other citation is 10 USC 6323 which covers voluntary retirement after 20 years active service. The provisions of PL 86-155, and its later codifications, are disregarded when completing Form SSA-654. Complete the case on the basis of 10 USC 6323, here quoted:
"6323." Officers: 20 years
"(a) An officer of the Navy or the Marine Corps who applies for retirement after completing more than 20 years of active service, of which at least 10 years was service as a commissioned officer, may, in the discretion of the President, be retired on the first day of any month designated by the President.(b) For the purposes of this section;
(1) an officer's years of active service are computed by adding all his active service in the armed forces; and
(2) his years of services as a commissioned officer are computed by adding all his active service in the armed forces under permanent or temporary appointments in grades above warrant officer, W-1.
(c) Unless otherwise entitled to a higher grade, each officer retired under this section shall be retired--
(1) in the highest grade, permanent or temporary, in which he served satisfactorily on active duty as determined by the Secretary of the Navy; or
(2) if the Secretary determines that he did not serve satisfactorily in his highest temporary grade, in the next lower grade in which he has served, but not lower than his permanent grade.
(d) A warrant officer who retires under this section may elect to be placed on the retired list in the highest grade and with the highest retired pay to which he is entitled under any provision of this title. If the pay of that highest grade is less than the pay of any warrant grade satisfactorily held by him on active duty, his retired pay shall be based on the higher pay.
(e) Unless otherwise entitled to higher pay, an officer retired under this section is entitled to retired pay at the rate of 2 1/2 percent of the basic pay of the grade in which retired multiplied by the number of years of service that may be credited to him under section 1405 of this title, but the retired pay may not be more than 75 percent of the basic pay upon which the computation of retired pay is based.
(f) Officers of the Naval Reserve and the Marine Corps Reserve who were transferred to the Retired Reserve from an honorary retired list, or are transferred to the Retired Reserve, may be retired under this section, notwithstanding their retired status, if they are otherwise eligible."
(g) The fact that a promotion acts to increase an officer's retired pay is not for consideration in completing Form SSA-654.
(h) Since social security wage credits were not a consideration at the time, a number of older retirement orders fail to show entitlement to the provisions of par. 4, section 15 of the Pay Readjustment Act of 1942 by virtue of the officer having had active service prior to November 12, 1918. If entitlement to have retired pay computed pursuant to that provision of law is a factor in completing Form SSA-654, and the orders fail to show such entitlement, it is necessary to obtain a statement for the record from the Promotions and Retirements Division. Prepare a memorandum to the Special Assistant (Retirements), PERS 313D, requesting a certification for the record as to whether or not the officer was entitled to have pay computed under the provisions of par. 4 Section 15 of the Pay Readjustment Act of 1942. Send the memo, with the record to PERS 313D, using NA Form 13008, Loan or Transfer of Records. Ensure that the certification is filed in the record when the social security case is completed.
(i) Officers who retired from the naval service prior to October 1, 1949, for physical disability were entitled to elect, under Section 411 of the Career Compensation Act of 1949, the method under which they desired to have their retired pay computed. The two types of elections were:
(1) Section 411 - Career Compensation Act of 1949.
Method (A) - (Physical Disability) - To qualify for disability retirement under the provisions of the Career Compensation Act of 1949.
Method (B) - (Entitlement to another election under Section 522 of this Act) - To receive retired pay computed by one of the two methods contained in Section 511 of the Act.
(2) Section 511 - Career Compensation Act of 1949.
Method (A) - The monthly retired pay authorized for such members of provisions of law in effect prior to the Career Compensation Act of 1949; i.e., the Pay Readjustment Act of 1942.
Method (B) Monthly retired pay equal to 2 1/2 percent of the monthly basic pay multiplied by the number of years of active service creditable (percentage multiple).
(j) When the record does not indicate the method of election as set forth above, Navy Correspondence Section (NCPMN-C) personnel proceed in the following manner:
(1) Prepare NA Form 13008 requesting method of election by which service person desired retired pay computed.
(2) Route record, with NA Form 13008 attached, to PERS 313D, Washington, DC through the Navy Liaison Officer.